US Jobless Claims Fall to 194,000 Amid Rate Uncertainty

US initial jobless claims dropped by 6,000 to 194,000 during the week ended October 17, coming in below economists’ expectations of 200,000, according to the US Department of Labor. The figures bring layoffs close to their lowest level since 1969, when claims hit 189,000 in July.

The four-week moving average fell by 1,000 to 197,750, while continuing claims rose by 25,000 to 1.728 million in the preceding week. The insured unemployment rate remained unchanged at 1.1%. The data highlights a labor market where companies are neither hiring aggressively nor cutting large numbers of jobs, following September's employment report showing the economy added 29,000 jobs.

Interest Rate Outlook

According to CryptoNews, the latest labor data arrives ahead of the Federal Reserve’s October 27 and 28 meeting. Policymakers are expected to leave interest rates unchanged at 3.75% to 4.00%. With inflation remaining elevated amid the conflict involving Iran, economists anticipate another 25 basis point rate hike in December.

Cryptocurrencies such as Bitcoin ($BTC), Ethereum ($ETH), and XRP faced renewed uncertainty over the Federal Reserve’s monetary policy outlook following the labor report. Higher borrowing costs can make speculative assets less attractive, though the employment figures alone do not establish a directional move for digital assets.

Key facts

• US initial jobless claims fell by 6,000 to 194,000 for the week ended October 17.
• Economists had anticipated jobless claims to reach 200,000.
• The Federal Reserve is expected to keep interest rates unchanged at its October meeting.
• Economists anticipate another 25 basis point rate hike in December.